Mindanao power producers urged to maximize energy mix

MANILA, Philippines - Mindanao
electric cooperatives (ECs) and distribution utilities (DUs) are urged to take
advantage of the excess power supply regime in the power grid as the Mindanao
Development Authority (MinDA) pushes for reliable and affordable power supply
in the region.

MinDA said power distributors should
maximize their energy mix and ensure affordable power for their consumers with
the oversupply of energy flooding Mindanao in the next few years.

“It is now all about achieving
a balanced mix of their sources. Electric cooperatives and distribution
utilities must now take advantage of the abundant supply and cheap hydro power
but at the same time utilizing their coal power supply contracts,” MinDA deputy
executive director Romeo Montenegro said.

“Power distributors must
balance reliability, sustainability and most importantly, affordability of
power,” he said.

The Duterte administration has pushed
for a “technology agnostic” approach on energy security – prioritizing
affordable power no matter the technology, to sustain the country’s
industrialization.

Although hydro power courtesy of the
Agus-Pulangi complex remains to be the biggest and cheapest single source for
power in the island, several coal power plants have come on line in the last
two years and, combined, now accounts to around half of the supply.

At present, AboitizPower, San Miguel
Energy, Filinvest and Saranggani Energy have completed their coal power plants
and have started supplying energy into the grid. The flood of new capacity is
causing an oversupply of power in Mindanao, an island that just last year
suffered up to eight hours of power curtailments daily in some areas.

However, the MinDA official said the
oversupply must also be balanced well as some ECs have over-contracted. He
encourages electric cooperatives to properly plan their demand forecast to
better manage their supply.

‘Their ultimate concern must be the
welfare of their consumers. What will give consumers the reliability and what
will be cheapest,” said Montenegro, who also heads the technical working group
of the Mindanao Power Monitoring Committee (MPMC).

Created in 2012 through
Executive Order 81, MPMC is tasked to coordinate the efforts of the national,
regional, and local governments and power industry stakeholders to improve
Mindanao’s power industry.